HAMILTON, Bermuda, Sept. 27 /PRNewswire-FirstCall/ -- Scottish Re Group Limited , a global life reinsurance specialist, today announced that it has permanently reduced the aggregate commitments under the Amended and Restated Credit Agreement dated July 14, 2005 among Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited, Scottish Re (U.S.), Inc. and Scottish Re Limited and a syndicate of banks to $42.8 million. The Company also announced that Scottish Annuity & Life Insurance Company (Cayman) Ltd., has terminated the Letter of Credit Agreement dated August 18, 2005 among Scottish Re (Dublin) Limited, Scottish Annuity & Life Insurance Company (Cayman) Ltd., various financial institutions, and Bank of America, N.A., as administrative agent, effective September 22, 2006. All letters of credit outstanding under that agreement, in an aggregate amount of $10 million, have been cancelled.
Dean Miller, Chief Financial Officer, remarked "As previously stated, the availability of further borrowings under these credit facilities has been uncertain. Rather than continue negotiations with the banking syndicate, we elected to permanently reduce the $200 million credit facility to $42.8 million, which is the face amount of outstanding letters of credit under the agreement. Using existing available liquidity, we are currently working with our clients to provide them with alternate letters of credit or assets in trust to replace these outstanding letters of credit. Once these alternate letters of credit or assets in trust are in place, we can terminate the $200 million credit facility which will eliminate the current restriction on the Company's ability to transfer funds to Scottish Re Group Limited in order to pay the $115 million 4.5% Convertible Notes which can be put to the Company on December 6, 2006. In addition, we terminated the $30 million letter of credit facility available to our Dublin subsidiary."
About Scottish Re
Scottish Re Group Limited is a global life reinsurance specialist. Scottish Re has operating companies in Bermuda, Charlotte, North Carolina, Dublin, Ireland, Grand Cayman, and Windsor, England. Its primary operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (U.S.), Inc., Scottish Re Limited, and Scottish Re Life Corporation. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Limited, is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. Additional information about Scottish Re Group Limited can be obtained from its Web site, http://www.scottishre.com/.
Certain statements included herein are "forward-looking statements" within the meaning of the federal securities laws. The management of Scottish Re Group Limited (the "Company") cautions that forward-looking statements are not guarantees and actual results could differ materially from those expressed or implied in the forward-looking statements. Important events that could cause the actual results of operations or financial condition of the Company to differ include, but are not necessarily limited to, the Company's ability to attract clients and generate business; the competitive environment; the Company's ability to underwrite business; performance of outside service providers; mortality risk; surrender risk; investment risk (including asset value risk, reinvestment risk and disintermediation risk); the impact of unforeseen economic changes (such as changes in interest rates, currency exchange rate, inflation rates, recession and other external economic factors); the impact of terrorist activities on the economy, the insurance and related industries in general and the Company in particular; regulatory changes (such as changes in U.S. tax law and insurance regulation which directly affect the competitive environment for the Company's products); rating agency policies and practices; and loss of key executives. Investors are also directed to consider the risks and uncertainties discussed
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